First Republic stock leads regional bank rally after Yellen deposit backstop remarks

After another steep drop Monday, a First Republic stock bounce is helping a broader regional bank rally. Investors seem to be betting more big bank and regulatory support for First Republic and the sector overall will prevent further runs on smaller banks.

Yellen, ahead of a speech today, pre-released remarks saying that the government could backstop deposits to protect the system and consumers if they see continued risk of contagion.

More from Jesse Pound and John Melloy at CNBC below.

Investors Tuesday are betting more big bank and regulatory support for First Republic will stem bank panic.

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– First Republic jumps 20%, leads comeback rally in regional banks Tuesday